Fiscal Note
2nd Sub. H.B. 166 (Gray)
2025 General Session
Trailer Registration and Uniform Fee
Amendments
by Chew, Scott H.
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $0 $(15,500) $(15,500)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
Transportation Fund $0 $157,000 $157,000
Transportation Fund, One-time $0 $709,000 $787,500
Transportation Investment Fund
of 2005
$0 $(242,000) $(242,000)
Transportation Investment Fund
of 2005, One-time
$0 $306,000 $185,000
Total Revenues $0 $930,000 $887,500
Enactment of this legislation could increase state tax revenues from registration fees by approximately
$930,000 in FY 2026 and $887,500 in FY 2027. It is estimated that this bill will decrease state
tax revenues by approximately $85,000 per year beginning in FY2028. Impacts will be to the
Transportation Investment Fund, Rural Transportation Infrastructure Fund and the Transportation
Fund.
Expenditures FY 2025 FY 2026 FY 2027
General Fund, One-time $0 $15,500 $0
Total Expenditures $0 $15,500 $0
Enactment of this legislation could cost the Tax Commission $15,500 one-time from the General Fund
in FY 2026 for programming changes.
FY 2025 FY 2026 FY 2027
Net All Funds $0 $914,500 $887,500
Local Government UCA 36-12-13(2)(c)
Enactment of this bill could reduce local government revenues from ad valorem/uniform fees by
approximately $85,000 in FY 2026, $990,000 in FY 2027, and $1.81 million in FY 2028.
2nd Sub. H.B. 166 (Gray)
2025/02/13 09:38, Lead Analyst: Andrea Wilko, Attorney: Gasser, K. Individuals & Businesses UCA 36-12-13(2)(c)
Enactment of this bill allows the owners of certain types of trailers to obtain a lifetime registration and
pay a one-time uniform fee in lieu of ad valorem tax. Owners of commercial intrastate trailers that
choose the lifetime registration option will only pay one-time fees and will forego having to pay future
registration and ad valorem fees. Registration fees on commercial intrastate trailers under current
code are estimated to be approximately $49 in 2026 and the one-time registration fees under this bill
are estimated to be $178 in 2026. Annual ad valorem tax on commercial intrastate trailers currently
ranges from $9 to about $14,000 depending on the value of the trailer. The one-time uniform fee in
lieu of ad valorem tax in this bill is $150. Owners who choose to pay the one-time registration fee will
pay more in a single year, but may save money over time if they own the trailer for at least 4 years.
Some owners who choose the one-time uniform fee in lieu of ad valorem tax could save money in one
year, with some owners saving up to $13,850. Other owners may need to own the trailer for multiple
years to anticipate saving using the one-time fees. Impacts will vary by owner, with only owners who
anticipate savings choosing the one-time registration and uniform fees. In total, it is estimated that
owners of these vehicles will pay approximately $845,000 more in FY 2026, $102,500 less in FY 2027,
and $1.895 million less in FY 2028.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
This bill does not create a new program or significantly expand an existing program.
Notes on Notes
Fiscal explanations estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not
measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal explanation is not an appropriation. The
Legislature decides appropriations separately.
2nd Sub. H.B. 166 (Gray)
2025/02/13 09:38, Lead Analyst: Andrea Wilko, Attorney: Gasser, K.